DUR funds request goes unanswered

 

The Red Oak City Council has made no decisions regarding a funding boost to Red Oak’s DUR Board. 

At their meeting Monday, June 20, the council met with DUR Chairman Roger Vial to discuss funding options for the organization further down the line. Vial said they have been working diligently the past four months and Vial was curious to know the council’s goals for the buildings in Red Oak’s downtown that are part of the current building facade project. 

“Right now, we have a lot of good things going on, but we’re not anywhere near close to getting things finished yet. I’ve got grants sitting on my desk with no money to appropriate for them. We just need some assistance. To make it worse, all the buildings are in a flood plain now, and the cost of flood insurance is very expensive,” Vial said. 

Vial said his ideal goal was to be given the entire amount of tax increment financing to put towards the project. 

“It’s generated because we’ve improved the buildings down there, and the facades is my suggestion for getting TIF funding for first,” commented Vial. 

Based on the current agreement with the City of Red Oak, the DUR Board is given $60,000 annually in TIF funding.  Vial said another option was to get $60,000 for grants and additional funding for one facade per year. His other concern involved the building work after the fronts of the stores were completed. 

“Once we get all the facades completed on the front of the buildings, we have to turn around and start working on the back of the buildings. My biggest problem is funding the grant requests we have for this year,” Vial said. 

Councilman Larry Barnett questioned how much of the funding for the building improvements was the obligation of the property owners. 

‘We’ve put a lot of money downtown. There are other businesses and properties throughout town. I would think that’s part of ownership. I don’t think it’s the city’s place to fund every new remodeling project that every downtown property owner wants. That’s hardly fair,” Barnett commented. 

Barnett added that the scope of dollars put into Red Oak’s downtown over the past three to four years was very significant. 

“We’re talking well over in excess of three million dollars,” Barnett said. The funding included not only the facades, but the street and sidewalk projects as well. 

Red Oak Mayor Bill Billings said the sidewalk projects could have been assessed to the property owners, but was paid for by the city to benefit property owners. 

“The purpose of that was to allow them to have some funding for their façade projects, which we have also paid a substantial portion of,” Billings said.

Billings said the other hesitation in pledging more TIF funding than had already been promised the DUR Board would leave them short of funds for other projects. 

“If we’ve given the DUR are the TIF funding, where do we come up with the money to work with other individuals for money on another project?” said Billings. 

Vial said he wasn’t suggesting the DUR Board spend all of the TIF money, he was just suggesting the funding become available. Vial asked if there were any way to alleviate the financial strain being put on the DUR program. 

“It has been an improvement, and I do appreciate all the money that has been given to our organization thus far, what would the council think about a grant amount towards a project?” Vial asked. 

City Administrator Brad Wright said the answer to that question all boiled down to the dollar amount. 

“It’s all about the dollar figure. Whatever you do with that funding is up to you, it’s all about what the council agrees to give to you,” Wright said. 

The DUR Board made plans to meet with the council at their next meeting to make an amendment to the development agreement with the City of Red Oak.

Billings and Wright both commented Vial for the efforts he’s put into the projects thus far, and his continued dedication to doing as much as he can to improve Red Oak’s downtown. 

The Red Oak Express

2012 Commerce Drive
P.O. Box 377
Red Oak, IA 51566
Phone: 712-623-2566 Fax: 712-623-2568

Comment Here